Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is a. \$91.36 per unit b. $47.88 per unit c. $128.34 per unit d. $21.39 per unit Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Using a single plantwide rate, the factory overhead allocated per unit of Product B is a. $640 b. $496 c. $320 d. $144 Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: The activity-based cost (rounded to the nearest cent) for each tape drive unit is a. $314.48 b. $19.34 c. $201.4 d. $699.02 Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $90,000. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $105,000. Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The total factory overhead allocated per unit of Rings is a. $23.25 b. $65.25 c. $44.10 d. $64.50 Product costs consist of only direct materials and direct labor. True False Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are as follows: All of the machine hours take place in the Fabrication department, which has an estimated overhead of $118,500. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $108,600. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs. The single plantwide rate (rounded to the nearest cent), if it is based on machine hours instead of labor hours, is a. $7.49 per machine hour b. $21.52 per machine hour c. $11.70 per machine hour d. $9.36 per machine hour Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are as follows: All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $72,000. Ramapo Company uses a single plantwide overhead rate (rounded to the nearest cent) to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is a. $39.00 b. $59.92 c. $77.00 d. $19.50 Scoresby Co. uses 6 machine hours and 2 direct labor hours to produce Product X. It uses 8 machine hours and 16 direct labor hours to produce Product Y. Scoresby's Assembly and Finishing departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. How much total factory overhead will be allocated to a unit of each of the two products? a. Product X,$1,440; Product Y,$2,560 b. Product X,$1,760; Product Y,$4,480 c. Product X,$3,200; Product Y,$9,600 d. Product X, $800; Product Y, $800 Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. Using a single plantwide rate (rounded to the nearest cent), the factory overhead allocated per unit of Product A in the Painting Department is a. \$236.32 per unit b. $325.00 per unit c. $147.70 per unit d. $161.00 per unit Graham Company wants to reduce activity costs by $0.30 per unit. The setup activity for a batch of 100 units of Part RR110 currently costs $80 per setup. A process engineer proposes reengineering the setup activity so that it takes 60% of the original cost per setup. By how much will this reduce activity costs per unit? Will more cost savings need to be found? a. $0.48; no b. $0.22; yes c. $0.53; no d. $0.32; no